Today I’m examining Indivior (LSE: INDV), whose share price has just picked up a couple of percent on the back of Q3 results. Indivior shares are up around 40% over the past 12 months.

It’s down to a continuing strong recovery that’s been going on since early 2020. Indivior shares had previously been hammered since their peak in 2018. And they’re still down 30% since June that year. Since 2015, the ups and downs of the share price make for a scary white-knuckle ride.

Drug development

Before I look at the latest update, what does the company do? It’s a drug manufacturer, which specialises in prescription drugs for the treatment of opioid dependence. That might not mean a lot to UK investors, but opioid addiction has become a massive problem in the US in recent years due to over-prescription of painkillers.

Indivior’s profits have been erratic. And it even swung to a reported loss in 2020. But analysts expect to see earnings growth over the next couple of years. We’re looking at a forecast price-to-earnings (P/E) multiple of around 19 for the current year.

Attractive growth value

That’s above the FTSE average. But for a growth share, if its prospects come good, it could prove to be a low valuation. And forecasts suggest growth will drop the P/E to around 12 in 2023.

Reported figures for the third quarter are mixed. But on an adjusted basis, earnings per share (EPS) grew by 61% compared to the same quarter of 2021. And nine-month EPS shows a 19% increase.

So, the earnings trend appears to be improving nicely. And Indivior has raised its full-year guidance. The company will present its “roadmap for delivering long-term shareholder value” at its planned Capital Markets Day on 7 December.

Downside

This all sounds good, but I think I need to be cautious. We’ve seen a couple of false starts in recent years. Booms and busts do often come with the territory for growth investors, particularly those investing in any kind of technology stocks in their early phases. But I’m also concerned Indivior might turn out to be a bit of a one-hit wonder.

It’s all about this opioid dependence thing. Yes, it’s a big problem. But for how long? There’s a concerning thing about a treatment for something like this. If it’s successful, won’t it eliminate the reason for its own existence?

I just have no idea what the long-term demand for these medications will be like. But it may be lower if the US gets over its opioid crisis.

Verdict

That’s where Indivior’s long-term roadmap comes into it. And I wouldn’t invest until I see what that has to say. If it looks promising though, Indivior might well become my next growth stock buy, especially if the valuation remains attractive for another couple of months.

TV

My first pick is broadcaster and TV content maker ITV (LSE: ITV). The ITV share price had been falling back in 2022. But it jumped 6.7% on Thursday morning on the back of the company’s half-year report.

ITV recorded an 8% rise in total revenue, to £1,679m, with a 16% increase in revenue from ITV Studios. I don’t see much to distinguish delivery platforms, and I reckon success is increasingly down to content production.

Statutory pre-tax profit rose by 65%. Adjusted EBITA did drop 3%, but the company put that down to additional reinvestment ahead of the launch of ITVX.

The committed full-year dividend of at least 5p would yield 6.8% on today’s price. And the shares are on a forecast price-to-earnings (P/E) ratio of under seven.

Drugs

Next up is Indivior (LSE: INDV), whose share price dropped 3% on first-half results. It has still doubled over the past 12 months, mind.

The generic drug manufacturer reported a 10% increase in net revenue. But operating profit dipped 14% with earnings per share (EPS) down 13%. That was pretty much in line with expectations. But analysts are forecasting earnings growth in the next few years which would drop the forward P/E to only around 11 by 2024.

It all stems from the company’s specialisation in opioid addiction treatments, with demand expected to climb in the US in the coming years. Revenue from Sublocade, specifically, grew 61% in Q2. And the board expects $390m-$420m from it for the full year.

Is the stock cheap now? Indivior is engaged in a share buyback programme, so it seems to think so.

Pumps

Weir Group (LSE: WEIR) is the third of the potentially cheap stocks I’m picking, after H1 results sent its shares up 6%. It does come after a slide since late 2021, so we might just be seeing a new buying opportunity.

The engineering firm makes pumps, turbines, valves, and things like that. And demand looks strong now. The company reported “record aftermarket orders” in the half, up 23%.

Revenue grew by 18%, with second quarter growth reaching 20%. The company does carry net debt, at a two times multiple of EBITDA, and that concerns me a little. But it expects free cash flow to increase through the second half, with 80%-90% free operating cash conversion.

And though Weir experienced input cost inflation, the firm says it managed to maintain its gross margins.

We’re looking at a P/E of close to 20. But growth forecasts would drop that to 14.5 by 2024.

Buy?

All three of these face individual risks, for sure. And I would not buy any of them based on just one set of results. No, I’d need to do some deeper research. But right now, they all look like cheap stocks to me.

Let’s explore where they could go next and whether I should buy.

Investec: a dividend stock with a solid yield

Specialist Anglo-African banking group Investec (LSE:INVP) has climbed higher than any other FTSE 250 stock over the past year. The blistering 137% growth in the Investec share price hasn’t dented the stock’s passive income appeal. It still yields a healthy 3.7%.

I also like the geographic diversification away from the UK economy that it offers via significant exposure to emerging markets from its Johannesburg operations. At £14.1bn, over 53% of its net core loans are in Southern Africa.

The FTSE 250 bank should also prove resilient in a rising interest rate environment. These factors make Investec stock a great pick to protect my portfolio from the twin threats of a domestic recession and inflation.

On the other hand, credit rating agencies have expressed concerns about rising government debt in South Africa. This could pose a headwind for Investec. Nevertheless, with adjusted operating profit of £377.6m for 2021 and positive forecasts for 2022, the potential risks wouldn’t dissuade me from buying the shares today.

Indivior: a pharma growth stock

Another star performer in the FTSE 250 index is healthcare company Indivior (LSE:INDV). The drug manufacturer’s share price is up by 132% on a 52-week basis and a stunning 585% over two years.

Indivior specialises in opioid addiction treatments. Demand for its products is rocketing due to the opioid problem currently haunting the US. According to the CDC, overdose deaths involving opioids increased by 138% from 2015 to 2021.

Unsurprisingly, Indivior’s financials have benefited. Net revenue increased from $647m to $791m last year, driven primarily by an 88% uptick in net revenue from its extended release injection, Sublocade.

Indivior stock is not without risks, however, demonstrated by its payment of a $600m settlement in 2020 to resolve liability arising from false marketing of its Suboxone Film treatment in Massachusetts, which at one stage threatened to bankrupt the company.

But with its legal troubles in the rear-view mirror and investment in R&D to expand its pipeline into Cannabis Use Disorder treatments, this pharmaceutical company has a bright future, in my opinion. I’d buy.

Drax Group: a FTSE 250 energy stock

Drax Group (LSE:DRX), the owner and operator of the UK’s largest biomass and coal-fuelled power station, has seen its share price almost double over the past 12 months.

Moreover, the company’s adjusted profits rose from £800m to £843m in 2021. Shareholders also benefit from a handy 18.8p dividend per share.

There are clear concerns about investing in a fossil fuel business. However, Drax Group has taken steps to mitigate this.

It is the world’s first energy company to announce an ambition to become carbon negative by 2030. Indeed, the company currently supplies 12% of the UK’s total renewable energy.

Furthermore, there is increasing pressure to diversify away from Russian oil and gas. In this context, I’d buy shares in this homegrown FTSE 250 energy company today.

A high-quality FTSE 250 stock

Indivior (LSE:INDV) manufactures treatments to help patients overcome opioid addiction. Opioid addiction, particularly in the US, is a growing problem. Indivior has also brought the first subcutaneous long-acting injectable treatment for schizophrenia to market. That is an essential step in diversifying the company’s revenues.

Indivior looks like a company that is high in quality to me. The company has been profitable in five of the last six years, with 2020 being the exception. Operating margins average a respectable 13.9% and are fairly stable. Trailing 12-month returns on capital and equity come in at 21% and 144%, respectively, which beats most companies in the same industry and indeed the wider market. However, I am mindful that the company is named in a class-action lawsuit related to the opioid crisis in the US and legal risks remain elevated.

A good value mid-cap stock

FirstGroup (LSE:FGP) operates bus, coach, and train services in the UK and North America. First Group suffered large revenue and stock price drops during the pandemic, but it has survived relatively unscathed. Yes, balance sheet debt climbed during the pandemic. But the sales of US businesses in 2021 has softened the impact. These sales also explain why revenue forecasts for 2022 and 2023 are lower than pre-pandemic levels.

I think FirstGroup looks good from a value perspective. While its price-to-earnings ratio of 14.4 does not scream cheap, the stock’s price-to-book and price-to-sales ratios of 0.62 and 0.17 are well below industry and market averages. Ultimately, the stock’s fate will be decided by how well its operations bounce back from the pandemic. There is a concern that bus and rail services will never return to pre-pandemic volumes. In terms of non-work travel, I am not convinced. However, working from home is here to stay and will keep some workers off buses and trains some of the time.

A low-volatility FTSE 250 stock

The Twentyfour Income Fund (LSE:TFIF) holds a portfolio of UK and European residential mortgage-backed securities and collateralised loan obligations. The company aims to deliver a dividend yield of around 6% to its investors from this portfolio. In terms of yields, 6% is quite high, and it is not achieved without taking a commensurate degree of risk. Just shy of three-quarters of the portfolio is rated below investment grade, and the portfolio could be subject to large losses. This would particularly be true when there is stress in the markets.

However, on the whole, Twentyfour Income stock has shown low levels of volatility compared to other FTSE 250 members. A good deal of the fund’s portfolio is in floating interest rate securities. So, a rising interest rate environment should be good for the company’s stock price. This makes the stock different from other equities found in the FTSE 250 index, and that’s why I hold it in my portfolio.

Stocks to buy for international growth

The first company on my list is a bit controversial. Indivior (LSE: INDV) develops and sells medications to treat opiate addictions. 

This corporation used to be highly profitable. Unfortunately, a string of lawsuits over the past couple of years has threatened its very survival. 

It now seems to be past the worst of these challenges, although I would not rule out further litigation in the future. Nevertheless, management is investing heavily in new growth initiatives, including the injectable drug Sublocade.

The lifting of pandemic restrictions has also helped the company return to growth. The group’s pre-tax profit for the final quarter of 2021 was $39m, compared with a loss of $14m for the same period a year before.

City analysts now believe the company’s net profit can hit $160m in 2022, putting the stock on a forward price-to-earnings (P/E) multiple of 15.8.

Even though the corporation may continue to face challenges such as potential lawsuits and competition from peers, I would buy the stock for my portfolio of growth shares as the business moves back into growth territory. 

Unique opportunity

I would invest £2,500 of my £5,000 lump sum in Indivior. The rest I would deploy in the Seraphim Space Investment Trust (LSE: SSIT). 

This is a unique opportunity and one of the best stocks to buy now, I feel. The objective of the investment trust is to generate capital growth by investing in a diversified portfolio of firms focused on the final frontier — space and its impact on our lives here on earth.

Space is set to become big business over the next few decades as private companies deploy billions into the market. However, it is also a highly speculative sector. I think most of the enterprises trying to make money from space today will not survive the next few years. The capital requirements are just too large, and the market is becoming incredibly competitive. 

Considering these risks, while I want exposure to the sector, I would rather own a diversified trust. Seraphim’s offering is not immune from these risks, but the diversification will help spread the risk. 

Seraphim also provides exposure to assets individual investors like myself may not be able to buy directly. The company recently announced that it had made a new $25m investment into private firm ICEYE Oy, the global leader in synthetic aperture radar (SAR) satellite imaging technology.

Despite the risks of getting involved in the space industry, I think this investment trust is one of the best growth stocks to buy now for my portfolio. It is one of the few ways I can build exposure to the rapidly expanding space technology industry. 

Indivior reported a net income of $205m in 2022 compared to a loss of $148m in 2021. But, for all the fiscal good news, what seems to have garnered the most attention is the board mulling over the possibility of a dual-listing for Indivior shares.

Dual-listing Indivior shares

Indivior derives about 80% of its revenue in the US. The large US revenue component has got Indivior’s board thinking about an additional US listing for the company’s shares. Today, the board has indicated they are actively assessing the possibility of a dual-listing but would consult Indivior’s shareholders before moving forward.

The most common way for a non-US entity to list on American exchanges is with American Depositary Receipts (ADRs). To create an Indivior ADR, Indivior stock is bought on the London Stock Exchange and given to a depositary bank in the US. The depositary bank issues ADRs, which represent one or more or a fraction of the Indivior shares it holds. Brokers or dealers then take the ADRs to the US stock markets to be bought and sold.

Would dual-listing be good for the Invidior share price

Dual-listing can improve a company’s profile and visibility. Raising capital in two capital markets should be easier. A dual-listing across the US and UK would increase the time Invidior shares trade on a given day and increase liquidity. These factors sound positive for the Invidior share price.

On the other hand, dual-listings incur an expense to set up. There are also ongoing expenses from dealing with different regulatory and accounting requirements (the US uses GAAP and the UK, IFRS) and from communicating with two investor bases. Dual-listed companies tend to be quite large, perhaps a reflection of the complexities involved. Indivior, at a market cap of £1.6bn, is small compared to the other dual-listed companies.

Dual-listing might be positive for the Invidior share price. But then again, it might not. I would point to some old but still relevant research from Mckinsey that suggests that, on average, dual-listings do not create value in any measurable way.

Why did the Indivior share price rise today?

Given the buzz around the dual-listing, I would suggest this helped lift the share price. However, the solid financial performance Indivior produced in 2021 is also a massive factor. Of the two reasons, I think the second, if it continues, will drive the share price in the future.

Indivior entered agreements in 2020 to resolve criminal charges and civil complaints related to one of its opioid addiction treatments in the US. There are penalties for failing to meet them. In addition, there are hundreds of preliminary stage civil lawsuits brought against the company as part of the opioid class action litigation. Legal risks remain high for Indivior.

It means I’m often rarely involved in the fastest-growing businesses when their valuations are astronomically high. But maybe that’s a good thing because popular and expensive stocks can handbrake turn on a penny if investor sentiment turns against them. In many ways, such beasts can be risky investments.

Businesses turning around

But one of the advantages of GARP investing is it can catch businesses on the turn — when they might be emerging from a troubled operational period into a new phase of growth. And sometimes, GARP stocks can go on to become popular and pricey growth stocks when the ‘story’ becomes well known in the investment community. However, that doesn’t always happen, of course.

I think GARP investing best describes the strategy that famous and successful investor Warren Buffett has been following for decades. And I also believe it’s what many investors in America mean when they speak of value investing. Buffett’s early investing style of looking for deep value situations went out of the window decades ago. And the father of value investing — Benjamin Graham — declared the strategy dead way back in the 1970s when the opportunity pipeline dried up.

After all, deep-value investing relies on mispricing by the stock market. And for many years, higher market participation and better information transfer have ironed out many mispriced situations before they can dig in.

Meanwhile, one stock I consider to be a GARP situation today is pharmaceutical company Indivior (LSE: INDV). The stock suffered some heavy blows from generic competition and legal challenges that sunk its earnings in 2019. But lately, it’s been rebuilding profits in its field of treating addiction and serious mental illnesses.

An upbeat outlook

In late October 2021 with the third-quarter results report, chief executive Mark Crossley was upbeat. The company reported “another quarter of good growth and further strengthening of our leadership in addiction treatment.”  And the success arose because of the “strong” commercial execution behind the company’s injection product Sublocade. And there was also “resilience” from the legacy film business in the US.

Looking ahead, Crossley said the firm’s ongoing strategy involves focusing on the “large and growing”opportunity in organised health systems (OHS).  He reckons the approach has already delivered five consecutive quarters of double-digit growth in underlying net revenue from Sublocade. And the business has “strong momentum” for 2022.

Meanwhile, with the share price near 240p, the forward-looking earnings multiple for 2022 is just above 15. And that’s when set against City analysts’ expectations for a more than 40% uplift in earnings this year. I think the valuation looks fair. And if I adjust for the cash pile sitting on the balance sheet, the rating can be lowered by around 30%.

There is some risk here because of the company’s narrow product focus. And we’ve seen recently what can happen when such risks bite. But I bought the stock recently to hold for the long term.

Indivior’s improving financials

But I was hesitant to buy it because I was unsure of its financials. I wanted to see more stability before adding it to my investment portfolio. Cut to now, and that is exactly what has happened. For the first nine months of 2021, up to 30 September, it reported a 23% increase in net revenue compared to the same period in 2020. Moreover, it also reported positive net income, which is a comeback after it clocked losses in the year before. In fact, it is now so positive about the full-year 2021, that the company has actually upgraded its guidance for both revenues and pre-tax earnings.

The FTSE 250 stock made gains through 2021

It is little wonder then, that investors gave it a thumbs-up. Its share price started 2021 on a somewhat uncertain note. Indivior had had a difficult year in 2020, when its net revenues had declined and it had swung into a loss. But by April 2021, signs of improvement were visible already, as its revenue started growing once again and it even reported profits.

Its share price continued to rise through the year as it financials improved. And by November last year, the stock was back to levels not seen since 2018. It did take a bit of a wobble in late November and December, when the Omicron variant created fresh panic in the financial markets. But it was able to shrug that off soon enough, and it ended the year at almost the highest levels in the year. 

Potential roadblocks ahead

In 2022 so far, the stock has corrected a bit. This could be correlated with a new report by the US Food and Drug Administration which states that using buprenorphine, a painkiller, in products to treat opioid use could be associated with severe dental problems, including teeth loss. Indivior’s products do use this. This could be playing on investors’ minds for sure. But I think there is more to its recent share price fall than that, because the price was falling even before the report was released. I expect that it could be on account of profit-taking, considering the big gains on the stock in 2021.

My assessment 

In fact, I still think there is upside to the stock. The opioid crisis is a big challenge, so demand for its treatment should stay strong. Moreover, Indivior has resolved its past issues, which included serious consequences from misrepresentation of the safety of its products. Interestingly, all analysts unanimously expect an increase in its share price over the next 12 months, as per a Financial Times compilation, with the average rise expected to be 30%. It goes without saying that all forecasts are subject to change, depending on evolving circumstances. This is particularly so now when we have still not put the pandemic behind us. 

Still, I think this FTSE 250 stock has come a long way. That in itself says a lot about the company’s ability to manage itself. I’d buy it now. 

Future

One company that’s knocked the ball out of the park has been media group Future (LSE: FUTR). Its shares have leapt 105% in the year to date as the company’s strategy of snapping up publishing assets continues to pay off and profits have soared. That’s a superb return compared to the 13% achieved by the FTSE 250 index as a whole.

At £4.5bn, Future is now knocking loudly on the door of the FTSE 100. Whether it manages to gain entry in 2022 is open to debate though. Having grown strongly during the pandemic, I wonder whether performance will moderate as we emerge on the other side. Some profit-taking looks inevitable too. 

However, I’m inclined to be optimistic. Margins are steadily improving and free cash flow is strong. Perhaps most importantly, the company announced in November that FY22 adjusted results would likely be “materially above current expectations“.

So, based on a valuation of 24 times earnings, I wouldn’t be against adding Future to my own portfolio.

Indivior

Another second-tier winner in 2021 is pharmaceuticals business Indivior (LSE: INDV). Its stock has delivered a near-150% gain — thanks to the company repeatedly raising its guidance on earnings. The supplier of medicines to treat drug abuse and mental illness has also been buying back its stock, further supporting the ascent of its share price. 

Looking ahead, analysts are expecting Indivior to grow earnings per share by 45% in 2022. This leaves the stock on a P/E of 16. Sadly, I don’t think the demand for its products is likely to fall dramatically on a longer timeline either, potentially making Indivior an ideal buy-and-hold candidate.

That said, it’s worth noting that this stock has shown itself to be highly volatile in the past. Back in 2020, for example, the price crashed 30% in just one day after news that former parent company Reckitt had filed a lawsuit against it. That’s the sort of movement we might associate with a penny stock. It also makes me doubt whether I’d want to add the stock to my own portfolio, particularly as Indivior doesn’t offer a dividend as compensation. 

Watches of Switzerland

A third FTSE 250 member that’s done extremely well for shareholders has been Watches of Switzerland (LSE: WOSG). The premium timepiece seller’s value has climbed just over 155%, serving as a reminder to me that momentum can continue for a lot longer than one may expect. Every time I’ve assumed a pullback will occur, the share price has only moved higher. Investing is hard.

Like Future, however, I do question what may happen to the stock when the pandemic has finally passed. I suspect shoppers will want to use their cash on experiences rather than posh watches. As such, I still maintain that some kind of retreat wouldn’t be a surprise in 2022. The current valuation seems to make the risky assumption that management will execute its plans perfectly.

As good as recent trading in the UK and the US has been, a P/E of 37 looks too dear to me. WOSG stays on my watchlist for now. 

Royston Wild: Games Workshop Group 

The Games Workshop Group (LSE: GAW) share price has fallen off a cliff since it struck record closing highs in September. I think this provides an excellent dip-buying opportunity.  

Though the fantasy wargame maker still trades on an elevated valuation (it carries a forward P/E ratio above 25 times) I think its long record of earnings growth merits a premium. It’s one I was happy to pay when I bought the growth stock late last year. 

Games Workshop has an impressive history of upgrading earnings forecasts. So appetite for the firm has nosedived since it advised in mid-September that recent trading has ‘only’ been in line with forecasts. I think this is an overreaction by the market, and I fully expect rapid international expansion and moves into money-spinning media like video games to keep producing strong and sustained profits growth long into the future. 

Royston Wild owns shares in Games Workshop Group.

Rupert Hargreaves: Dunelm Group

The UK retail sector is incredibly competitive. This makes it hard for most companies to grow. However, some – like Dunelm Group (LSE: DNLM) – seem to have cracked the code.

Since 2018, the group’s earnings per share have risen by 75%, and it does not look as if the company will slow down any time soon. Dunelm has invested heavily in its e-commerce strategy, which has helped the group weather the pandemic.

As the company reinvests its pandemic windfall profits back into growth, I reckon Dunelm can continue to expand. That is why I would buy the growth stock for my portfolio.

Rupert Hargreaves does not own shares in the Dunelm Group.

Christopher Ruane:  S4 Capital

After a recent pullback in its share price, I think now could be a good time to add more S4 Capital (LSE: SFOR) to my portfolio. The digital advertising group has continued its aggressive growth strategy, announcing last month the acquisition of tech specialist Zemoga. With almost 400 staff, it is a sizeable addition to the S4 fold. The deal strengthens S4’s foothold in South America.

Fast growth brings risks, including integrating people. If S4 doesn’t do that well, it could stall profit growth.

Christopher Ruane owns shares in S4 Capital.

Andy Ross: Brooks Macdonald 

Brooks Macdonald (LSE: BRK), is a Jim Slater-style growth stock in my opinion. Its price to earnings growth (PEG) ratio is 0.5, which indicates the shares may be undervalued. A price to earnings ratio (P/E) of 13 adds further credence to that view. Top line growth has been good as well with revenue going from £81m in 2016 to £118m in 2021. Not super exciting, but consistent.  

Recent full year results were good. Group revenue of £118.2 million was up 8.8%. The underlying profit margin was up by 4.7 points to 25.9%.  

All in all, it strikes me as a top growth stock. Best of all, as a financial services firm, it’s not going to be impacted by gas prices, lorry driver shortages or many of the other problems companies are facing.  

Andy Ross does not own shares in Brooks Macdonald.

Zaven Boyrazian: Focusrite

Focusrite (LSE:TUNE) designs and develops a wide range of music production equipment and software for the audio industry. It undoubtedly caters to a niche market. But the demand for audio equipment throughout the pandemic increased as many individuals took up music production to pass the time during lockdown.

Now that lockdown is over, demand remains high as music festivals and other events make their return. Looking at the latest trading update, revenue for its 2021 fiscal year is estimated to be £173m. That’s up from £130m in 2020 and is significantly ahead of analyst expectations.

Management does employ a fairly aggressive acquisitive growth strategy that could create problems if a lousy deal is made. However, given the impressive growth, it’s a risk that I think is worth taking.

Zaven Boyrazian does not own shares in Focusrite.

Roland Head: Hikma Pharmaceuticals

FTSE 250 pharma group Hikma Pharmaceuticals (LSE: HIK) is high-quality business that’s unfairly overlooked by investors, in my view.

This £5.4bn company sells a mix of generic medicines and own-branded products. Profit margins are high.

Recent news includes the launch of a generic version of leading asthma drug Advair and the acquisition of injectables specialist Custopharm. Hikma generates margins of nearly 40% on injectables, so growth here could boost profits.

The main risk I can see is that management will overpay for acquisitions. But I don’t see any sign of this yet.

Analysts expect Hikma’s earnings to rise by 10%-15% per year between now and 2023. With the stock trading on 16 times 2021 forecast earnings, I view Hikma as a buy for growth.

Roland Head does not own shares in Hikma Pharmaceuticals.

G A Chester: The Gym Group 

With firepower of over £100m in cash and credit, The Gym Group (LSE: GYM) is uniquely positioned to take advantage of fallout from the pandemic. All its rivals are more financially constrained. 

Due to the blizzard of retail store closures, GYM is being offered dozens of high-quality sites at very attractive commercial rents. It currently expects to open 40 new gyms by the end of next year, taking its estate to around 230. 

There’s execution risk in the size and speed of the rollout, but this near-term opportunity and structural growth in the low-cost gym segment make GYM my top pick. 

G A Chester has no position in The Gym Group.

Kevin Godbold: Indivior

Pharmaceutical company Indivior (LSE: INDV) will release its third-quarter report on 28 October. Meanwhile, City analysts have pencilled in an uplift in earnings of around 60% for 2022.

Previously, July’s half-year report contained some impressive numbers for revenue and profits. The firm’s SUBLOCADE injection product drove much of the progress, and that’s used for treating opioid use disorder — Indivior specialises in treatments for addiction and serious mental illness.

There’s a positive outlook for the business and the company is engaged in a $100m share buyback programme, which the directors say “appropriately balances returning capital to shareholders with maintaining our ability to execute our patient-focused strategy.”

As the business makes further progress, I think there could be more to come for shareholders here.

Kevin Godbold owns Indivior shares.

Paul Summers: Boohoo Group

Utterly biased I may be but I really do think fast-fashion giant Boohoo (LSE: BOO) offers great value at its current price. At the time of writing, the shares have tumbled nearly 50% in twelve months. For a hugely ambitious company with multiple brands (now including Debenhams). a rapidly growing international presence and 500 million potential customers, that looks very overdone. 

Yes, supply chain problems, ongoing investment in the business and the lowering of guidance on sales growth may also be troubling some. However, I regard these as either temporary setbacks or prudent moves by management that shouldn’t trouble patient holders.

Having fallen so far, I submit the risk/reward trade-off with Boohoo has never been better.

Paul Summers owns shares in Boohoo Group